Umakanthan53
Labour Law & Hr Consultant
Sumitk.saxena
Service/manager-hr
Girraj123
Hr & Admin
Heritageindia
Hr Manager
+1 Other

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Dear Friends please advise the bonus amount as per the cases mentioned below. I am in confusion whether gross salary is used for bonus calculation or not.
Whether Over Time is also considered or not.
Please see the below case:-
CASE 1:-
Basic Earning = Rs. 12000/-
HRA Earned = Rs. 8000/-
Over Time Earned = Rs. 2000/-
What will be Bonus for Case 1 ?
CASE 2:-
Basic Earning = Rs. 6000/-
HRA Earned = Rs. 3000/-
Conveyance = Rs. 10000/-
Other Allowance = Rs. 1000/-
Over Time Earned = Rs. 2000/-
What will be the Bonus for Case 2 ?

Dear Heritageindia,
Before raising your query, it would have been better that you made a reading of the definition of the term "salary or wage" as given in sec.2(21) of the Payment of Bonus Act,1965.
Only, the employees' total earnings comprising basic and dearness allowance in the accounting year have to be taken into account for the purpose of calculation of bonus for that year. All other allowances including O.T, incentive etc have to be excluded.

Could you guys help me out How to calculate Attrition % for month.? Example-Year Attrition % is Total No. of Attrites / Manpower X 100
Calculation of Bonus Should Be Done On Basic+DA Thanks & Regards, From, Sumit Kumar Saxena
Dear Heritageindia,
Please refer your quarry, refer the definition of the term "salary or wage" as given in sec.2(21) of the Payment of Bonus Act,1965.
Only, the employees' total earnings comprising basic and dearness allowance in the accounting year have to be taken into account for the purpose of calculation of bonus for that year.
All other allowances including O.T, incentive etc have to be excluded.

While calculating the Bonus,only Basic pay + DA is including, other all allowance are excluded.
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